Corruption and Tax Compliance

A report of tax compliance achievements from the Taxation Directorate General in May was overshadowed by all the noise of the 2019 election. This is despite tax compliance being a crucial issue that determines the state’s ability to fund all of its activities and national development efforts.

Compared to the government’s 85 percent tax compliance target in 2018, the tax compliance realization remained low at 67.09 percent (Taxation Directorate General, 2019). Despite the figure being slightly higher than the previous year’s 66.74 percent, at this level of tax compliance growth, especially after the tax amnesty policy in 2015, it will be difficult to significantly increase our tax-to-GDP ratio from 11 percent without any significant breakthrough.